Section 296
Section 296: time limit for completing a block assessment
Section 296 fixes the deadline for completing a block assessment - the special assessment of "undisclosed income" for the block period that follows a tax search or requisition, dealt with in Sections 292-295.
The deadline
Irrespective of the general assessment time limits in Section 286, the order assessing the total undisclosed income of the block period under Section 294 must be passed within eighteen months from the end of the quarter in which the search was initiated or the requisition was made.
Why this is a separate, longer window
Block assessments involve reconstructing a person's undisclosed income across multiple past years based on material found during a search, which is inherently more complex than a routine single-year assessment - hence a dedicated, generally longer time limit than the ordinary assessment deadlines in Section 286, running from the end of the quarter (not the exact date) of the search or requisition.
Frequently asked questions
How long does the Assessing Officer have to complete a block assessment?
18 months from the end of the quarter in which the search was initiated or the requisition was made.
Does the normal assessment time limit under Section 286 apply to block assessments?
No - Section 296 overrides it; block assessments follow their own 18-month deadline running from the end of the search/requisition quarter.
Related sections
Want this applied to your actual filing, not just explained?
Get help responding to a block assessment / search caseLast updated 9 September 2026